Boston, MA 05/01/2014 (wallstreetpr) – Russia is expected to lose sleep over widespread economic sanctions coming from the U.S. and Europe. However, caught in the mix are oil companies such as Statoil ASA (ADR) (NYSE:STO) that have big interests in Russia. Though the company said it would comply with sanctions as required, it might find it hard to defy the impact that is likely to come with agreeing with the sanctions.
Perhaps that explains the seeming change in conversation from the Norway’s oil company top executives. In a recent media interview, Statoil CEO Helge Lund said he was not sure about attending economic forum in St Petersburg in June where new economic sanctions against Russia are likely to be discussed or even adopted. The executive was categorical about the need to create value for the shareholders and for that matter the company needed to assess the possible impact of the economic measures.
Interest in Russia
Statoil ASA(ADR) (NYSE:STO) has several investment interests in Russia. The company has a joint investment interest with Rosneft, the largest oil company in Russia. The company also has other deals that include oil and gas exploration in Russia.
However, Russia’s military actions in Ukraine seem to be complicating business environment for the company. While creating value for investors is high on the agenda, the company also has an obligation to comply with the economic resolutions that might be reached over the political unrest in Ukraine that is being advanced by Russia.
Defying sector gloom
Despite the challenges in the oil industry, Statoil ASA (ADR) (NYSE:STO) emerged with success in Q1 at a time when its peers suffered revenue and profit dip. The company generated a profit of 46 billion crowns or $7.7 billion. That was up from 42.4 billion crowns in Q12013. The figures exceeded 42.02 billion crowns that the analysts polled by Reuters expected for the quarter.
On top of a strong profit, the company announced per share quarter dividend of 1.80 crowns.
Statoil ASA(ADR) (NYSE:STO)’s Q1 benefited from good results from U.S. operations and the higher prices for its products.
